Golden third quarter for Otjikoto
Production up 28% y/y
The Otjikoto Mine is anticipated to produce a gold volume ranging from 190 000 to 210 000 for 2023.
B2Gold Corp’s Otjikoto mine in Namibia generated revenue of nearly US$87.96 million or about N$1.6 billion in the three months ended September, up 61% from the same quarter last year.
“The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, performed well during the third quarter of 2023, producing 44 940 ounces of gold, mainly due to improved processed grade as a result of high-grade ore mined from the Wolfshag underground mine,” B2Gold said in its latest quarterly report.
In the third quarter of 2023, the mill's feed grade stood at 1.66 grams per tonne, with a mill throughput of 0.86 million tonnes and a gold recovery rate averaging 98.4%.
Wolfshag
The Wolfshag underground mine maintained a consistent production rate throughout the third quarter of 2023, averaging over 1 259 tonnes per day at an average grade of 5.55 g/t.
However, production volumes from the Otjikoto pit Phase 5 mine experienced a temporary reduction in the same quarter.
This was due to a minor slope failure leading to haulage restrictions caused by a redesign of the main haulage ramp. The ramp has since been reconstructed, and there is no anticipated impact on the full-year budgeted 2023 gold production, B2Gold said.
As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 203 000 ounces of gold within 1.1 million tonnes of ore, with an average grade of 5.55 g/t gold.
Open pit
Open pit mining operations at the Otjikoto Mine are scheduled to gradually decrease in 2024, concluding in 2025, while processing operations will persist until 2031. This timeline is contingent on the economic viability of stockpiles, which are forecasted to be exhausted by that time.
Underground operations are currently projected to continue until 2026, with the potential for extension pending the success of the ongoing underground exploration programme in identifying additional mineral deposits.
Costs
In the third quarter of 2023, cash operating costs amounted to US$785 per gold ounce produced (US$744 per ounce gold sold).
The lower-than-expected cash operating costs per ounce produced during this quarter were attributed to increased production and the depreciation of the Namibian dollar. Additionally, reduced diesel fuel expenses played a role in contributing to the lower-than-anticipated cash operating costs per ounce produced, B2Gold said.
For the same period, all-in sustaining costs were reported at US$1 178 per gold ounce sold.
The lower-than-expected all-in sustaining costs for the third quarter of 2023 were influenced by the lower-than-anticipated cash operating costs, a higher-than-expected number of gold ounces sold, and lower-than-anticipated sustaining capital expenditures, according to B2Gold.
These capital expenditures were primarily associated with the timing of deferred stripping and underground development, the company added.
Capital expenditure
During the third quarter of 2023, capital expenditures amounted to US$13 million, comprising US$9 million for deferred stripping in the Otjikoto pit and US$3 million for the development of the Wolfshag underground mine.
Projections for the Otjikoto Mine in Namibia indicate an expected gold production range of 190 000 to 210 000 ounces for the entirety of 2023.
During the initial nine months of the year, Otjikoto demonstrated cash operating costs per ounce and all-in sustaining costs per ounce below initial expectations, primarily attributed to the depreciation of the Namibian dollar.
Revised estimates for Otjikoto's cash operating costs per ounce in 2023 now fall between US$545 and US$605 per ounce, compared to the original guidance range of US$590 to US$650 per ounce.
Similarly, the updated forecast for all-in sustaining costs per ounce is now expected to be within US$950 to US$1 010, in contrast to the initial guidance range of US$1 080 to US$1 140 per ounce.
“The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, performed well during the third quarter of 2023, producing 44 940 ounces of gold, mainly due to improved processed grade as a result of high-grade ore mined from the Wolfshag underground mine,” B2Gold said in its latest quarterly report.
In the third quarter of 2023, the mill's feed grade stood at 1.66 grams per tonne, with a mill throughput of 0.86 million tonnes and a gold recovery rate averaging 98.4%.
Wolfshag
The Wolfshag underground mine maintained a consistent production rate throughout the third quarter of 2023, averaging over 1 259 tonnes per day at an average grade of 5.55 g/t.
However, production volumes from the Otjikoto pit Phase 5 mine experienced a temporary reduction in the same quarter.
This was due to a minor slope failure leading to haulage restrictions caused by a redesign of the main haulage ramp. The ramp has since been reconstructed, and there is no anticipated impact on the full-year budgeted 2023 gold production, B2Gold said.
As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 203 000 ounces of gold within 1.1 million tonnes of ore, with an average grade of 5.55 g/t gold.
Open pit
Open pit mining operations at the Otjikoto Mine are scheduled to gradually decrease in 2024, concluding in 2025, while processing operations will persist until 2031. This timeline is contingent on the economic viability of stockpiles, which are forecasted to be exhausted by that time.
Underground operations are currently projected to continue until 2026, with the potential for extension pending the success of the ongoing underground exploration programme in identifying additional mineral deposits.
Costs
In the third quarter of 2023, cash operating costs amounted to US$785 per gold ounce produced (US$744 per ounce gold sold).
The lower-than-expected cash operating costs per ounce produced during this quarter were attributed to increased production and the depreciation of the Namibian dollar. Additionally, reduced diesel fuel expenses played a role in contributing to the lower-than-anticipated cash operating costs per ounce produced, B2Gold said.
For the same period, all-in sustaining costs were reported at US$1 178 per gold ounce sold.
The lower-than-expected all-in sustaining costs for the third quarter of 2023 were influenced by the lower-than-anticipated cash operating costs, a higher-than-expected number of gold ounces sold, and lower-than-anticipated sustaining capital expenditures, according to B2Gold.
These capital expenditures were primarily associated with the timing of deferred stripping and underground development, the company added.
Capital expenditure
During the third quarter of 2023, capital expenditures amounted to US$13 million, comprising US$9 million for deferred stripping in the Otjikoto pit and US$3 million for the development of the Wolfshag underground mine.
Projections for the Otjikoto Mine in Namibia indicate an expected gold production range of 190 000 to 210 000 ounces for the entirety of 2023.
During the initial nine months of the year, Otjikoto demonstrated cash operating costs per ounce and all-in sustaining costs per ounce below initial expectations, primarily attributed to the depreciation of the Namibian dollar.
Revised estimates for Otjikoto's cash operating costs per ounce in 2023 now fall between US$545 and US$605 per ounce, compared to the original guidance range of US$590 to US$650 per ounce.
Similarly, the updated forecast for all-in sustaining costs per ounce is now expected to be within US$950 to US$1 010, in contrast to the initial guidance range of US$1 080 to US$1 140 per ounce.
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